Must-have resources for Texas rental housing industry professionals

Hurricane Harvey Disaster Relief Resources

Posted: Aug. 31, 2017

Updated July 26, 2018

Here are some resources from the Texas Apartment Association, the American Red Cross and others to help property owners deal with the impact from the storm. Property owners and managers may find these resources useful.

Please be Aware:We have heard that individuals claiming to be with FEMA are contacting managers asking for resident’s personal information over the phone. We have spoken to FEMA and been told this is a SCAM. Do not give ANY information over the phone!

As of early April, more than 5,000 families were still living in hotels following Hurricane Harvey. In addition to a number of housing portals that can be accessed here on TAA’s website, FEMA recently created an internal housing portal that FEMA staff uses to refer applicants displaced by the hurricane to possible housing.

Owners who want to be included on the FEMA internal housing referral portal can send an email to:

Information needed for the FEMA Rental Resources portal includes the address of the property (with city, county and zip code), the number of units available, the number of bedrooms of each available unit, the amount of rent per month, the contact name and number of either the property owner or property manager, and any pertinent requirements or details.

FEMA’s only role is to provide disaster survivors with the contact information and address of prospective properties. Any agreement or terms for rent or lease is solely and exclusively between the property owner/manager and the prospective renter.

The Texas General Land Office is administering a $10,000,000 Multifamily Rental Housing program for owners of multifamily developments of 8 units or more that were impacted by Hurricane Harvey. The funds will be available to rehabilitate, reconstruct or build new units that were either damaged or destroyed by the storm or replace units that were lost due to the storm in Nueces, Aransas or Refugio Counties.

Program Requirements:

Minimum application request is $250,000 with a maximum request of $5,000,000.

Applicant must be the current owner of the property or be under contract to purchase a property from the owner of the property at the time of the storm.

Applicant Requirements:

Provide an application that identifies the property, describes the construction type and amenities and details the ownership interest of the property and the financial background and experience background of the Owner;

Submit financial data on the property including rent projections, proformas and an estimate of the repair or replacement cost that will be required on the property;

Certify any and all disaster assistance received following Hurricane Harvey;

Submit documentation that damages were caused by Hurricane Harvey; and

Multifamily property owners must be located in Nueces, Aransas or Refugio counties.

Our Hurricane Harvey Forum 90-minute webinar which took place on September 21, 2017 offered rental property owners, managers and supplier partners in the industry an opportunity to get the latest information on response to the storm and what comes next. Click below for the full recording, to view the PowerPoint presentation from the webinar or listen to excerpts that address FEMA resources and special information for tax-credit properties.

Hurricane Harvey survivors participating in FEMA’s Transitional Sheltering Assistance program—which provides short-term shelter to evacuees who cannot return to their homes—will be required to check out of their temporary housing on July 1. FEMA officials said disaster care managers are working with individuals to make sure they have long-term housing plans. As of June 21, an estimated 273 households were still relying on housing assistance in Harris County. www.fema.gov/disaster/4332

List of Local Mental Health Authorities and Local Behavioral Health Authorities There are 39 LMHAs/LBHAs in Texas. Each LMHA/LBHA provides mental health services to adults and children who have severe and persistent mental illnesses (SPMI) such as schizophrenia, major depression, bipolar disorder, and other severely disabling mental disorders which require crisis resolution or ongoing and long-term support and treatment. However, many LMHAs/LBHAs in affected areas are in the process of hiring and mobilizing crisis counselors that can be called upon to assist survivors in the community. Individuals in need of crisis services are not required to have a formal mental health diagnosis to qualify for services. The disaster crisis counselors and other mental health crisis services can be accessed through the LMHA/LBHA crisis hotline numbers. TAA members can call on behalf of someone or encourage and support someone to call for themselves.

In the wake of Hurricane Harvey, the Texas Real Estate Commission and the Texas Appraiser Licensing and Certification Board (the Agency) extended all deadlines for two months for all license holders and applicants statewide with license expiration or application deadlines in August and September. That extension ended on October 31, 2017.

After careful assessment of the significant impact and damage sustained by our license holders, the Agency has decided to further extend application and renewal deadlines by an additional period up to four months for those in the 60-county disaster area declared by Governor Abbott.

License holders who live in the affected counties with licenses set to expire August 31, 2017 through January 31, 2018, will be extended until February 28, 2018.

Initial applicants who live in the affected counties with applications set to expire August 21, 2017 through February 27, 2018, will also be extended until February 28, 2018.

Texas law prohibits charging excessive or exorbitant fees for certain life necessities, including housing, following a disaster. The Office of the Attorney General Consumer Protection line accepts price-gouging complaints.

Properties that use dynamic pricing should be careful not to automatically adjust rents in a way that may be perceived as price gouging. Here is the relevant state law:

If you believe that catastrophic damage is substantial, or that performance of needed repairs poses a danger to residents, Paragraph 26.5 of the TAA Lease allows the owner to terminate the lease by giving residents at least 5 days’ written notice.

Filing insurance claims promptly when able is important, but there is a rash of misinformation circulating concerning a change in Texas law that takes effect September 1. While damage assessments and documentation are key to both relief efforts and the claims process, protecting life and property should be your primary concern when conditions are still dangerous.

HB 1774, designed to limit lawsuit abuses in weather-related cases, goes into effect on September 1. According to the Texas Insurance Council, under this new property litigation law:

The claims process for filing a claim has not changed. The new law only impacts lawsuits filed after September 1, when there is a dispute between the insured and the insurer.

Consumers still have all legal remedies available under consumer protection laws in the event an insurer engages in bad-faith conduct.

The Texas Department of Insurance is available to handle any complaints about insurers.

The new law does not take away any right to sue and does not diminish any cause of action that a person has against an insurance company. HB 1774 does, however, require notice before a lawsuit is filed, and makes some other changes that impact lawsuits against insurers, including the penalty interest rate.

The pre-lawsuit notice is effective for all “actions filed on and after the effective date, which is September 1, 2017.” Any lawsuit filed after September 1, 2017, would be governed by the new law.

HB 1774 also only affects homeowners’ insurance claims, which does not cover flood or wind damage claims.

TAA members should contact their insurance companies directly to file claims, and work with your adjuster to identify all damages and coverages.

Here are some resources that may be useful to independent owners, as well as others.

Webinar on how to tackle the storm’s aftermath: This webinar by TAA member John Ridgway, CPM, was developed for his colleagues with Lifestyles Unlimited and includes practical information owners may find useful as they begin the recovery process. The link to this webinar is provided as a tool to assist our members in a time of need. TAA cannot endorse or verify recommendations made in the webinar. We encourage our members to seek advice from qualified experts if they have questions regarding topics discussed in the webinar. We appreciate John’s willingness to share this resource with other TAA members.

Loans for homeowners can be up to $200,000 to repair their primary residence.

Homeowners and renters can receive up to $40,000 for personal property losses, including disaster-damaged vehicles.

Small businesses and nonprofit organizations can qualify for up to $2 million for repairs to business real estate, lost inventory, etc.

For small businesses and most private nonprofit organizations, SBA can also offer low-interest Economic Injury Disaster Loans to cover working capital during the recovery period.

Rates are as low as 1.75 percent for homeowners or renters, 3.305 percent for businesses and 2.5 percent for private nonprofits with terms up to 30 years.

Some key points:

There are no costs to apply and no obligation to accept any loan funds.

Applicants don’t have to know how much they may need when they apply (loan amount is based on a loss estimate completed by our verification department).

Applicants DO NOT have to wait for any insurance claims to fully settle. SBA will work with applicants while they are finalizing their insurance settlement, which can then be used to pay down/pay off the loan. We often find we can get funds in the hands of survivors before insurance settlements are received, therefore helping speed up the recovery and rebuilding process.

Applying for an SBA Disaster Assistance Loan does not automatically eliminate a survivor’s eligibility for FEMA assistance.

For the 2017 franchise tax reports with valid extensions to Nov. 15, the Comptroller’s office is granting an automatic extension to Jan. 5, 2018, to businesses located in the federally declared disaster area in Texas. Businesses located in these counties do not need to request an extension for their franchise tax reports.

Service providers who file franchise tax reports on behalf of other taxpayers can request a franchise tax extension if the provider is affected by Hurricane Harvey and is located in the federally declared disaster area in Texas. See How to Request an Extension below.

Sales Tax

The Comptroller’s office is granting businesses located in the federally declared disaster area in Texas that are not required to report (file) electronically an automatic 30-day extension to complete the following sales and use tax reports:

August monthly reports due Sept. 20

Quarterly reports due Oct. 20

Taxpayers are not required to report electronically if they paid less than $50,000 in sales and use tax in the preceding state fiscal year (Sept. 1 to Aug. 31). Taxpayers located in the federally declared disaster area in Texas who are not required but choose to report electronically will also receive the automatic extension.

Taxpayers required to electronically report sales and use tax and taxpayers reporting other tax types may request a 30-day extension of time to file if located in the federally declared disaster area in Texas. Taxpayers affected by Hurricane Harvey or Hurricane Irma located in disaster areas outside of Texas may also request a 30-day extension of time to file.

How to Request an Extension

An affected business must request the extension either by calling the Comptroller’s Taxpayer Services line at 800-252-5555 or emailing ExtensionRequests@cpa.texas.gov and provide the following information:

taxpayer name

taxpayer number

name of person making request

email or phone contact information of person making request

tax type(s) for which extension is requested

affected filing period

Extension requests due to disasters are handled on a case-by-case basis. The taxpayer will be notified when an extension request is granted or denied.

Was Your Elevator or Escalator Damaged During Harvey?

If your elevator or escalator was damaged or submerged, then it is important that the equipment be assessed by a TDLR-licensed Elevator Contractor prior to being placed back into operation.

TEMPORARY SUSPENSION of Expedited Plan Review Fees for Equipment Located in Affected Counties

If alterations are required for your elevator, escalator, and related equipment (not routine maintenance and service), then the equipment alterations must be submitted to TDLR for plan review.

To help with Harvey recovery efforts, TDLR will expedite plan reviews from the affected counties identified in Governor Greg Abbott’s disaster proclamation. TDLR is suspending the $1,000 Expedited Review Fee and only charging the standard Plan Review Fee of $200. Please coordinate with your TDLR-licensed Elevator Contractor on how to properly designate your plan review submittal.

TEMPORARY SUSPENSION of Removed from Service Fees for Equipment Located in Affected Counties

If damage to your elevator, escalator, and related equipment will delay obtaining your required annual inspection, you may request that the equipment be Removed from Service without having to pay the $20 fee. Please coordinate with your TDLR-licensed Elevator Inspector on how to properly submit your Removed from Service request and have the equipment locked out in accordance with our Administrative Rules.

Loans for homeowners can be up to $200,000 to repair their primary residence.

Homeowners and renters can receive up to $40,000 for personal property losses, including disaster-damaged vehicles.

Small businesses and nonprofit organizations can qualify for up to $2 million for repairs to business real estate, lost inventory, etc.

For small businesses and most private nonprofit organizations, SBA can also offer low-interest Economic Injury Disaster Loans to cover working capital during the recovery period.

Rates are as low as 1.75 percent for homeowners or renters, 3.305 percent for businesses and 2.5 percent for private nonprofits with terms up to 30 years.

Some key points:

There are no costs to apply and no obligation to accept any loan funds.

Applicants don’t have to know how much they may need when they apply (loan amount is based on a loss estimate completed by our verification department).

Applicants DO NOT have to wait for any insurance claims to fully settle. SBA will work with applicants while they are finalizing their insurance settlement, which can then be used to pay down/pay off the loan. We often find we can get funds in the hands of survivors before insurance settlements are received, therefore helping speed up the recovery and rebuilding process.

Applying for an SBA Disaster Assistance Loan does not automatically eliminate a survivor’s eligibility for FEMA assistance.

Harris County Business Recovery Center, University of Houston Small Business Development Center, Region Office, 2302 Fannin St., Suite 200, Houston, TX 77002. The center’s current hours are Mondays-Fridays from 8 a.m.-6 p.m. and Saturdays and Sundays from 9 a.m.-4 p.m.

The Texas Association of Business is offering assistance to business owners via a hotline during normal business hours. Call 512/637-7714 or email hurricane@txbiz.org.

HoustonRecovers.org; links to resources where you can volunteer, donate and register for assistance; updates from City Hall

The State Bar of Texas legal hotline – 800/504-7030 – helps people find answers to basic legal questions and connects them with local legal aid providers following declared disasters. Learn more at texasbar.com/disasters.

Texas Extension Disaster Education Network provides information on cleaning and drying flood-damaged homes, emergency food and water supplies, post-flooding safety precautions and other topics. It also has a number of instructional videos on handling flood recovery.

The Texas Apartment Association is making a $10,000 donation to the American Red Cross to assist with Harvey relief efforts, and will be contributing additional funds to local charities in affected areas. The National Apartment Association also has pledged $10,000 to the American Red Cross.

If you’d like to help contribute to Harvey relief efforts, text REDCROSS to 90999 to donate $10 to American Red Cross Disaster Relief or visit The American Red Cross.

TAA Disaster Preparedness Guide includes tools and resources to help your apartment community be prepared for the quickest possible response when a disaster or emergency occurs, including issues arising from flooding.

The guide includes checklists and tools for responding to some of the most common natural and man-made disasters and emergencies.

The guide also provides:

Best practice suggestions on communication with employees, residents and the media;

Download the Red Cross Emergency App to have safety information available on mobile devices, including emergency weather alerts and information on what to do in the case of a flood. The app also displays shelter locations.

For your residents, the app includes tips on how to assemble an emergency kit in the event of a power outage or evacuation, an “I’m Safe” button to let loved ones know they’re okay, and a real-time map to help find the location of Red Cross shelters should they need to leave their home. The app has a Spanish language toggle switch and can be downloaded by visiting redcross.org/apps.

If someone is coming to a shelter and has time to prepare, they should bring any prescription medications, extra clothing, pillows, blankets, hygiene supplies, important documents and other comfort items. If possible, they should also include any special items for children such as diapers, formula and toys, and items needed by family members with unique needs.

Talk to everyone in your household about what to do if a flood occurs. Decide where you would meet and who you would contact in case of flooding. Assemble and maintain an emergency preparedness kit. Be prepared to evacuate your family and pets at a moment’s notice. To locate the nearest Red Cross emergency shelter, check your Emergency App or visit redcross.org/shelter. Listen to area radio and television stations for possible flood warnings and reports of flooding in progress.

People should get their disaster kits ready. Include a gallon of water per person—enough for three days, three-day supply of non-perishable food, a flashlight and extra batteries, a hand crank weather radio, first aid kit, medications, personal hygiene items, extra cash, cell phone and chargers, family and emergency contact information, copies of important papers and a map of the area. More details on what to include are available here.

Heed flood warnings

Listen to your local radio and TV stations for updated flood information. A flood WATCH means flooding or flash flooding is possible in your area. A flood WARNING means flooding or flash flooding is already occurring or will occur soon in your area. When a flood or flash flood warning is issued for your area, head for higher ground and stay there.

Never drive on flooded roads

Don’t walk, swim or drive through floodwater. Just six inches of fast-flowing water can knock you over and two feet will float a car. If you come upon a flooded road while driving, turn around and go another way. If you are caught on a flooded road and waters are rising rapidly around you, get out of the car quickly and move to higher ground. Stay out of areas subject to flooding. Underpasses, dips, low spots, canyons, washes, etc. can become filled with water.

Be especially cautious at night when it is harder to recognize flood danger!